Aerial Refueling Market

The aerial refueling market was valued at approximately US$ 655.75 million in 2024 and is projected to grow to around US$ 997.23 million by 2031, with an expected CAGR of 6.8% from 2025 to 2031.

Analyst Perspective:

The forecast for the aerial refueling market is based on a combination of various secondary and primary research findings, including key company reports, association data, and databases. The market has experienced significant growth in recent years. A primary driver of this growth is the increasing global military aircraft fleet and the need to replace or upgrade aging military tanker aircraft. Additionally, the development of unmanned refueling tankers, which are currently undergoing testing for their first operational use by various armed forces, is also a significant factor. Manufacturers in this sector are focusing on creating innovative products to maintain their competitive edge. However, challenges such as growing environmental concerns related to aircraft operations and the high costs associated with installing refueling system components may hinder market growth. The report outlines growth opportunities in light of current trends and factors driving the aerial refueling market.

Market Overview:

The aerial refueling market is somewhat consolidated, with a limited number of players operating in various regions. Several countries are increasing their military investments to acquire new tanker aircraft models to replace outdated fleets, which require substantial financial resources for effective operation. Ongoing geopolitical tensions among nations such as Russia-Ukraine, China-Taiwan, Israel-Palestine, US-China, India-Pakistan, and India-China are also raising awareness about the need for new military aircraft and tanker models to enhance their armed forces. These tensions are driven by the growing geopolitical competition among countries to strengthen their military capabilities, leading to the procurement of advanced technologies and improvements in their armed forces. Such factors are driving the deployment of tankers and combat aircraft, thereby increasing the demand for aerial refueling systems across various regions.

Strategic Insights

Market Driver:

Increasing Procurement of Military Aircraft & Helicopters Fuels Demand for Aerial Refueling Systems

The rising need for advanced technologies to counter missile threats, along with improving target identification, surveillance, and detection of potential airborne threats, is enhancing the use of advanced aerial refueling in military aircraft, jets, and helicopters. Governments worldwide are making significant investments in acquiring high-end military aircraft, combat jets, and helicopters to address the increasing airborne threats, which is broadening the application of aerial refueling and tanker aircraft globally. Numerous contracts and agreements are being made to procure advanced defense aircraft and helicopters to combat the rise in sophisticated airborne attacks. Some notable investments, contracts, and agreements include:

1. In 2023, Boeing secured a contract valued at US$ 12 billion to supply Apache attack helicopters to Poland, which will receive 96 units of AH-64E Apache helicopters.
2. In 2022, the US government and Lockheed Martin finalized a contract for the production and delivery of 398 F-35s for approximately US$ 30 billion.
3. In 2022, the Indian Air Force announced plans to acquire 114 fighter jets, with 96 expected to be developed domestically.
4. In 2022, Switzerland signed a deal to procure three dozen F-35A fighter jets.
5. In 2022, L3Harris Technologies Inc. secured a US$ 3 billion contract to supply military aircraft to the US Special Operations Command.

Thus, the increasing procurement of military aircraft and helicopters to address the growing instances of airborne attacks is driving the aerial refueling market.

Segmental Analysis:

The market is segmented by component into refueling pods, refueling probes, drogues, hoses, boom, and others. In 2022, the boom segment held the largest share of the aerial refueling market and is expected to maintain its dominance throughout the forecast period. Additionally, hoses and refueling pods are anticipated to experience healthy CAGRs in the aerial refueling market from 2022 to 2030. The boom segment's growth is driven by its higher cost, technological integration, and its ability to facilitate smooth refueling operations during flight. However, the boom segment may see slower growth during the forecast period due to the increasing demand for probe & drogue systems, which are favored for their affordability, flexibility, and ease of installation. These factors are likely to enhance the aerial refueling market size during the forecast period.

Regional Analysis:

In terms of revenue, North America led the aerial refueling market in 2022 and is expected to maintain its leading position throughout the forecast period. The North American aerial refueling market was valued at US$ 275.01 million in 2022 and is projected to reach US$ 413.21 million by 2030, with a CAGR of 5.2% from 2022 to 2030. North America is home to several major aircraft OEMs, including Boeing, Bombardier, Lockheed Martin, and Airbus, which have production facilities across the region and continuously generate demand for aerial refueling systems. Additionally, the presence of aerial refueling system manufacturers in countries like the US and Canada, including vendors such as Eaton, GE Aviation, Marshall Aerospace & Defense Group, Parker Hannifin Corporation, Boeing, and Raytheon Technologies Corporation, is further driving the demand for aerial refueling products in the region.

Aerial Refueling Market Report Scope

Key Player Analysis:

The analysis of the aerial refueling market involves identifying and evaluating key players across various regions. Prominent players profiled in the aerial refueling market report include L3Harris Technologies Inc, Raytheon Technologies Corporation, Curtiss-Wright Corporation, Honeywell International Inc, General Electric Company, Safran SA, BAE Systems Plc, Moog Inc, Meggitt Plc, and Garmin Ltd. Additionally, Cobham Plc, Safran, Eaton, GE Aviation, and Marshall Aerospace & Defense Group are recognized as leading market players due to their diverse product offerings.

Recent Developments:

The aerial refueling market report includes an analysis of company positioning and concentration to assess the performance of competitors in the market. Companies in the aerial refueling market are actively adopting both inorganic and organic strategies, such as product launches, mergers, and acquisitions. Some recent examples include:

1. In February 2021, Eaton acquired the aerial refueling system unit of Cobham Plc in the US for US$ 2.8 billion.
2. In November 2023, Eaton announced the successful testing of its newly designed actively stabilized drogue prototype, primarily aimed at autonomous aerial refueling for next-generation fighter jets.

These factors are contributing to the growth of the aerial refueling market from the suppliers' perspective.

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